I recently put three REO properties under contract for three separate customers.  Boy, what a difference between the three agents and their sellers.  The process by which they handle their business was truly three separate experiences!  Perhaps it's the banks they're working with, but as I recall we're bound by the ethics and rules and regulations of the real estate licensing entity in the State of Florida, not the banks and REO companies who are hiring us!  Remember your license doesn't hang on the bank wall!

What I would like to bring to everyone's attention is the recent change in lending that may tie you and your customer up in an REO closing.  Most banks will not appraise the property until they have a fully executed contract. Seems like a novel idea, right?  Wrong!  It took us well over two weeks to get ANYTHING back from the bank and when we did the customers were HIGHLY ENCOURAGED to use the lender for their mortgage. And, it was STRONGLY ADVISED they use the seller/lender if they wanted repairs completed.  Frustrating to say the least. 

And to add insult to injury, we were to turn the loan around for a 30 day close, but because it took us two weeks to get the contract back there is no way we could make the deadline.  So what does the seller say?  Tough you signed it, you knew what you were getting into and the penalty is $50 a day for every day you don't close.  I think I'll request an extension and HIGHLY ENCOURAGE them to do the right thing. 

Now I ask you, if you thought unregulated short sales were bad, REOs aren't much better!  URGH!